New UAE Law Means Employers Must Keep To Contract Terms

expat network

New UAE Law Means Employers Must Keep To Contract Terms

Changes to UAE employment law means employers cannot change contract terms without the consent of the Ministry of Labour.

The new mandatory employment offer letter from UAE companies will help expats understand what exactly awaits them once they land in the Emirates.

Quoted in Emirates 24/7, Thenji Macanda, Senior Associate at law firm Taylor Wessing, said: “The mandatory offer letter should promote transparency or openness between the employer and the employee. This will ensure that expats coming for employment are not in for any unpleasant shocks.

“In the past, [sometimes] expatriates were sent attractive employment offers/terms from the UAE whilst they were in their home country, but when they arrived in the UAE, they realised that those terms would not apply and they were offered less-favourable terms on arrival.
“The employees historically found themselves in a weak position to renegotiate once they had taken all steps to actually relocate to the UAE.

“The amendment to the law will benefit employees as it will ensure that the employer is held to the original attractive offer and will be unable to later change the terms and conditions in the employment contract without the consent of the Ministry of Labour, unless of course the terms are more generous in which case the employee benefits anyway,” explained the Taylor Wessing expert.

“We anticipate that the Ministry of Labour’s offer letter will be a simpler version than the standard Ministry of Labour employment contract and set out full details of the compensation, i.e. designation, notice, basic salary and allowances and these terms will need to be adhered to in the employment contract.

The UAE Ministerial Decree 764 of 2015 introduces a mandatory employment offer and states that an entry permit will not be granted for an expatriate employee until an employment offer has been lodged with the Ministry of Labour.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.